Risk Management Frameworks Explained

Choosing the right risk management framework can feel overwhelming. This guide breaks down the most common options and helps you decide which fits your organisation.

Why Frameworks Matter

A framework provides structure. Without one, risk management becomes ad-hoc — different teams using different approaches, inconsistent assessment criteria, and no clear way to aggregate or compare risks.

Common Frameworks

ISO 31000

The international standard for risk management. Principles-based rather than prescriptive, making it adaptable to any organisation.

Best for: Organisations wanting a flexible, internationally recognised approach.

COSO ERM

Developed by the Committee of Sponsoring Organizations. More detailed than ISO 31000 with specific components and principles.

Best for: Larger organisations, especially those with US regulatory exposure.

NIST RMF

The Risk Management Framework from the National Institute of Standards and Technology. Originally for federal systems but widely adopted.

Best for: Organisations with significant IT/cyber risk focus.

Choosing Your Framework

Consider:

• Regulatory requirements in your industry
• Client or partner expectations
• Your organisation's maturity level
• Available resources for implementation

Often, the best approach is to start simple and mature over time rather than implementing a complex framework poorly.

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